Daily Market Wrap Up by Mr. Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking):
"Yesterday's tail end correction was followed by yet another gap up opening in our markets; courtesy to bumper opening in IT Giant, Infy post its stellar quarterly numbers. However, once again this hollow opening got sold into as markets cooled off in initial trades. For the major part of the day, index traded on a flat to positive note. All of a sudden, at the stroke of the penultimate hour, the buying momentum accelerated to conclude the weekly expiry well above 10700 mark by recouping major portion of previous day's losses.
Today's decent recovery from lower level was no surprise to us as we had clearly advised staying hopeful as long as Nifty defends a key support of 10550. Technically speaking, we were observing a positive divergence in hourly time frame RSI-Smoothened oscillator in Bank Nifty early in the morning. This became one of the major catalysts in driving today's recovery. Now price-wise, the hourly time frame chart exhibits a 'Triangle' pattern and a move beyond 10775-10800 would lead to a breakout from this price configuration.
Hence with continuation with our recent stance, we expect the Nifty to surpass the 10850 quite soon. On the flipside, 10650 followed by 10550 has become a strong support zone. Traders are advised to keep following individual stocks and trade with a positive bias as long as 10550 remains intact."